More companies, including Starbucks and Delta Air Lines, are letting workers divert a portion of their paychecks into emergency funds. The new law also lets employers automatically enroll workers earning less than $160,000 into emergency savings accounts. They can save up to $2,500 in a money market-type fund in a Roth 401(k) and withdraw it tax- and penalty-free. These emergency funds may help people avoid pulling money directly from their 401(k) investments. Vanguard found those with $2,000 or more in emergency savings are significantly less likely to cash out their 401(k)s or take hardship withdrawals. Misty Scammahorn, 47, said she opened a high-yield bank account three years ago from Sunny Day Fund Solutions, which offers employer-sponsored emergency funds. She has since saved $12,000 through automated payroll deductions

https://www.wsj.com/personal-finance/retirement/401k-withdrawal-emergency-savings-25926369?st=PP55Kx